In this article, we discuss the 12 Best Beginner Stocks to Buy According to Analysts.
Stronger-than-expected corporate profits and the prospect of the US Federal Reserve cutting interest rates are the catalysts likely to push equity markets higher. That’s the stance held at RBC Capital Markets as they expect the S&P 500 to edge higher in the second half of the year.
RBC’s head of US equity strategy, Lori Calvasina, has reiterated that the S&P 500 has what it takes to power through 7,100, given the bullish momentum in the equity market. Nevertheless, investors should be cautious given seasonal patterns that come into play in October.
“Although we are nudging our 2025 price target up a little, and articulating one for 2H26 that anticipates a move higher in the S & P 500 over the next 12-15 months, we do remain on guard for choppy conditions in U.S. equities between now and year-end 2025,” Calvasina said. “Our main concerns have been poor seasonal patterns in September and October in recent years, as well as stalling valuations in the S&P 500.
Despite concerns about the lackluster job growth over the past few months, stocks remain at all-time highs. According to Dubravko Lakos-Bujas, the global head of market strategy at JPMorgan, this is partially due to investors’ perception that they are pricing in a “Goldilocks scenario” for equities, which alludes to the hope that the economy will be sturdy enough to withstand a recession while still being cool enough to accept Fed rate cuts.
While investing in stocks offers a powerful way to grow wealth, the process can be intimidating, especially for beginners in the investment world. The challenge has constantly been identifying stocks poised for growth while backed by solid underlying fundamentals.
Some of the best beginner stocks to buy, according to analysts, are those with an impressive record in growing sales and returning value to shareholders.
Our Methodology
To identify the best beginner stocks to buy, according to analysts, we sifted through ETFs and financial media reports. We then selected companies with a 10-year revenue CAGR of 7% to 15% (a high single-digit to mid-teens growth rate is our definition of a mature and reliable grower). Finally, we settled on stocks with analysts expecting more than 10% (as of September 16) and popular among elite hedge funds (as of Q2 2025). Finally, we ranked the stocks in ascending order based on their upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is straightforward: our research has demonstrated that we can outperform the market by replicating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Best Beginner Stocks to Buy According to Analysts
12. Booking Holdings Inc. (NASDAQ:BKNG)
Stock Upside Potential: 12.14%
10-Year Revenue Growth Rate: 10.9%
Number of Hedge Fund Holders: 92
Booking Holdings Inc. (NASDAQ:BKNG) is one of the best beginner stocks to buy, according to analysts. On September 11 at the Goldman Sachs Communicopia + Technology Conference 2025, the company affirmed plans to expand its footprint as it also seeks to enhance customer experiences through technology.
Part of the plan entails leveraging artificial intelligence to enable personalized travel planning as part of the connected trip vision. The company is also exploring strategic collaborations with tech giants such as OpenAI, Google, and Microsoft as it seeks to develop advanced artificial intelligence tools. Additionally, it is enhancing investments in AI to improve customer service, product development, and marketing.
AI integration is a key step as Booking Holdings continues to capitalize on alternative bookings by combining traditional and alternative accommodations on a single platform and presenting them to consumers.
“We continue to grow. Again, it’s now a really sizable number of listings. We have 8.4 million listings at the end of the second quarter globally in alternative accommodations only. That grew 8% year over year. We’re very much focused on continuing to drive that growth,” said CFO Ewout Steenbergen.
Booking Holdings Inc. (NASDAQ:BKNG) is a global online travel services provider that helps people book accommodations, flights, car rentals, and other travel experiences through its family of brands like Booking.com, Priceline, Agoda, and KAYAK.
11. Costco Wholesale Corporation (NASDAQ:COST)
Stock Upside Potential: 13.27%
10-Year Revenue Growth Rate: 9.8%
Number of Hedge Fund Holders: 91
Costco Wholesale Corporation (NASDAQ:COST) is one of the best beginner stocks to buy, according to analysts. On September 5, Truist Securities reiterated its ‘Hold’ rating on the stock and a $1,042 price target. The positive stance follows a strong August sales report.
The retail giant posted a 6.7% increase in sales in August, representing a 20 basis points improvement from July’s sales numbers. The August sales growth rate was slightly higher compared to the comparable sales growth of 6% for the fourth fiscal quarter. Net sales in August totaled $21.56 billion, representing an 8.7% increase from the same period last year.
The higher sales growth rate underscores Costco’s ability to attract value-conscious customers with competitive offerings. Nevertheless, Truist Securities has raised valuation concerns, as the stock is trading at 50 times the estimated earnings per share for calendar year 2025.
Costco Wholesale Corporation (NASDAQ:COST) operates membership-based warehouses and e-commerce sites, offering a limited selection of quality, national-brand, and private-label products at low prices to both businesses and individuals.
10. S&P Global Inc. (NYSE:SPGI)
Stock Upside Potential: 14.92%
10-Year Revenue Growth Rate: 10.9%
Number of Hedge Fund Holders: 106
S&P Global Inc. (NYSE:SPGI) is one of the best beginner stocks to buy, according to analysts. On September 9, CEO Martina Cheung reiterated that the company’s strategic priorities are on artificial integration and data management.
The company is increasingly integrating artificial intelligence into its operations to enhance products and internal processes. While two-thirds of the company’s employees are already using the S&P Spark Assist Platform, the integration is expected to result in a significant reduction in headcount.
S&P is placing more emphasis on artificial intelligence as its clients, which include financial institutions, begin experimenting with the technology in the hope that it will increase employee productivity and enable cost savings. The company is exploring strategic partnerships with AI companies to make its data accessible to customers who leverage AI tools.
S&P Global Inc. (NYSE:SPGI) is a financial information and analytics company that provides data, insights, and benchmarks across the global capital, commodity, and automotive markets. The company’s key offerings include credit ratings from S&P Global Ratings and data and analytics from S&P Global Market Intelligence.
9. Eli Lilly and Company (NYSE:LLY)
Stock Upside Potential: 20.30%
10-Year Revenue Growth Rate: 11%
Number of Hedge Fund Holders: 119
Eli Lilly and Co. (NYSE:LLY) is one of the best beginner stocks to buy, according to analysts. On September 17, the company announced that its diabetes medication, Mounjaro, delivered positive results in Phase 3 Trials in children and adolescents with type 2 diabetes.
The diabetes medication reportedly demonstrated significant improvements in blood sugar control and body mass index. The Phase 3 SURPASS-PEDS trial met its primary endpoints on reducing A1C levels by an average of 2.2% after 30 weeks of treatment. The trials also achieved secondary endpoints whereby 86.1% of participants on a 10mg dose reached a target A1C of 6.5% or lower.
“Youth living with type 2 diabetes often face a more aggressive disease course,” said Tamara Hannon, lead trial investigator and director of the Clinical Diabetes Program at Indiana University School of Medicine.
Following the successful trials, Eli Lilly has submitted results to the global regulatory agencies seeking an expanded indication for Mounjaro.
Eli Lilly and Company (NYSE:LLY) is a global pharmaceutical corporation focused on discovering, developing, manufacturing, and marketing medicines to treat a range of medical conditions, with a primary focus on diabetes, oncology, immunology, neuroscience, and obesity.
8. Microsoft Corp. (NASDAQ:MSFT)
Stock Upside Potential: 21.64%
10-Year Revenue Growth Rate: 11.7%
Number of Hedge Fund Holders: 294
Microsoft Corporation (NASDAQ:MSFT) is one of the best beginner stocks to buy, according to analysts. On September 16, the company confirmed that its Digital Crimes Unit had successfully brought the Raccoon365 phishing network under control. Cybercriminals have used the tool to steal Microsoft 365 usernames and passwords.
With the help of a court order, the unit seized 338 websites associated with Raccoon365, thereby disrupting their technical infrastructure. Raccoon365 had become popular among cybercriminals for offering subscription-based phishing kits used to target unsuspecting Microsoft 365 users.
Raccoon365 phishing kits leveraged Microsoft branding to make fraudulent emails, attachments, and websites appear legitimate. Cybercriminals used it to send emails, thereby enticing users to open the link and disclose their personal information. Since July 2024, the kit has been used to steal at least 5,000 Microsoft credentials in 94 countries.
Microsoft Corporation (NASDAQ:MSFT) is a technology company that develops and sells software, hardware, and cloud-based services. Its products range from the Windows operating system and Microsoft Office productivity suite to the Xbox gaming console, the Surface line of devices, and the Azure cloud platform.
7. Novo Nordisk A/S (NYSE:NVO)
Stock Upside Potential: 21.74%
10-Year Revenue Growth Rate: 12.6%
Number of Hedge Fund Holders: 45
Novo Nordisk A/S (NYSE:NVO) is one of the best beginner stocks to buy, according to analysts. On September 17, Berenberg upgraded Novo Nordisk from ‘Hold’ to ‘Buy’, and revised its price target to DKK425.00, signaling a potential 20% upside.
The move comes after a series of guidance downgrades that followed the company’s mid-2024 share price peak, prompting a reset in market expectations. Berenberg believes this shift opens the door for a more constructive discussion around Novo Nordisk’s growth prospects, valuation, and strategic catalysts, particularly in the diabetes and obesity treatment space.
The research firm also announced a change in its sector preference, favoring Novo Nordisk over competitor Eli Lilly. It emphasized that Novo is now positioned for renewed momentum, especially under the leadership of its new CEO. While challenges remain, Berenberg sees room for positive surprises and strategic wins that could further strengthen the company’s standing in the obesity drug market.
Novo Nordisk A/S (NYSE:NVO) is a healthcare company that develops and delivers innovative medicines and delivery systems for serious chronic diseases, primarily diabetes, obesity, and rare blood and endocrine disorders.
6. Boston Scientific Corporation (NYSE:BSX)
Stock Upside Potential: 26.16%
10-Year Revenue Growth Rate: 13.3%
Number of Hedge Fund Holders: 100
Boston Scientific Corporation (NYSE:BSX) is one of the best beginner stocks to buy, according to analysts. On September 11, analysts at Needham reiterated a ‘Buy’ rating on the stock and a $121 price target. The positive stance comes as the company plans to launch Bolt’s laser-based intravascular lithotripsy (IVL) system for peripheral use in late 2025.
The company has already commenced enrollment for a fracture study to evaluate the clinical use of the IVL technology. The study comes as Boston Scientific seeks to capitalize on an $8.5 billion opportunity in the IVL market.
The Bolt system offers better deliverability, more pulses, and more reliable targeted acoustic treatment than Shockwave Medical’s IVL system. Consequently, the Peripheral Interventions and Interventional Cardiology product portfolios and sales forces should enable quick market share capture in the IVL segment.
The research firm believes the IVL technology could add 0.3% to Boston Scientific’s revenue growth and contribute 0.5% growth in EPS over the next five years.
Boston Scientific Corporation (NYSE:BSX) is a global medical technology company that develops and sells less-invasive medical devices to help diagnose and treat a wide range of conditions, thereby improving patient outcomes and reducing healthcare costs.
5. Intuit Inc. (NASDAQ:INTU)
Stock Upside Potential: 29.26%
10-Year Revenue Growth Rate: 14.4%
Number of Hedge Fund Holders: 105
Intuit (NASDAQ:INTU) is one of the top beginner stocks to buy, according to analysts. On September 10, at the Goldman Sachs Communicopia + Technology Conference 2025, CFO Sandeep Aujla reiterated the company’s renewed focus on AI-driven solutions and its expansion into the mid-market segment.
According to the CFO, the company is investing in artificial intelligence-driven solutions that can enhance customer experiences and developer productivity. The strategic focus comes as 80% of developers are increasingly using AI tools that enhance coding productivity by 40%. The company is also looking to capitalize on the fact that 90% of marketing efforts are driven by artificial intelligence.
As part of its new strategy, Intuit plans to scale its customer base to exceed 100 million globally. The push comes as the company seeks to capitalize on the $89 billion opportunities surrounding AI.
“Looking ahead on the business platform, I expect that five years or less from now, most of the work that small and midsize businesses are doing on the platform will be done by AI or AI-powered human experts. Today, already, since introducing agents in July, we’re seeing a meaningful amount of our customers save 12 hours per month,” Sandeep said.
Intuit Inc. (NASDAQ:INTU) is a global financial technology company that develops financial software and services for individuals and businesses. Its main products include QuickBooks for business accounting, TurboTax for tax preparation, Credit Karma for credit monitoring, and Mailchimp for marketing and email campaigns.
4. SAP SE (NYSE:SAP)
Stock Upside Potential: 37.09%
10-Year Revenue Growth Rate: 7.2%
Number of Hedge Fund Holders: 32
SAP SE (NYSE:SAP) is one of the best beginner stocks to buy, according to analysts. On September 11, the company completed the acquisition of SmartRecruiters. With the acquisition, it gains access to enterprise-grade talent acquisition software.
The company plans to integrate the software into the SAP SuccessFactors Human Capital Management (HCM) suite. The integration should make it easier for enterprises to manage the hiring lifecycle from sourcing to onboarding. Thanks to its AI-enabled recruiting capabilities, the suit is expected to result in a faster time to hire, improved candidate experiences, and deeper analytics.
SAP SE (NYSE:SAP) develops enterprise software, including Enterprise Resource Planning (ERP) systems, for managing core business processes like finance, human resources, supply chain, and customer relations.
3. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Stock Upside Potential: 38.47%
10-Year Revenue Growth Rate: 14.06%
Number of Hedge Fund Holders: 107
Intuitive Surgical, Inc. (NASDAQ:ISRG) is one of best beginner stocks to buy, according to analysts. On September 4, Bernstein SocGen Group reiterated an ‘Outperform’ rating on the stock and a $685 price target.
According to the research firm, the stock is currently trading at a discount after pulling back from its high of $610 per share, recorded in January. Consequently, it views the current trading range as a buy opportunity for investors eyeing exposure in the medical technology sector.
The research firm has echoed the company’s five transformational product launches, which underscore its long-term prospects. It expects the product launches to strengthen the stock’s sentiment in the market. The remarks follow Intuitive’s 21% year-over-year increase in second-quarter revenue to $2.44 billion. The increase came with the da Vinci 5 surgical system entering a broad launch phase.
Intuitive Surgical, Inc. (NASDAQ:ISRG) develops and markets the da Vinci robotic-assisted surgical system, a technology that enables surgeons to perform minimally invasive procedures with enhanced precision, vision, and control. Their goal is to make surgery more effective and less invasive for patients.
2. Alkermes Plc. (NASDAQ:ALKS)
Stock Upside Potential: 52.30%
10-Year Revenue Growth Rate: 9%
Number of Hedge Fund Holders: 44
Alkermes (NASDAQ:ALKS) is one of the best beginner stocks to buy, according to analysts. On September 9, HC Wainwright reiterated a ‘Neutral’ rating on the stock and a $46 price target. The stance follows the company’s positive results from the Vibrance-1 phase 2 study.
Study results show that Alixorexton is the first orexin 2 receptor agonist to demonstrate a clinically meaningful and statistically significant impact on wakefulness, cognition, and fatigue. The company is developing Alixorexton as an oral selective orexin treatment for NT1 narcolepsy and idiopathic hypersomnia (IH).
“The improvements in patient-reported outcomes, especially those related to fatigue and cognitive function, suggest that Alixorexton may offer meaningful relief across a spectrum of symptoms that impact patients,” said Giuseppe Plazzi, MD, PhD, a neurologist, and director of the Narcolepsy Center at the IRCCS of the Neurological Sciences of Bologna
The impressive outcomes from Vibrance-1 highlight the potency of the orexin program as Alkermes looks to usher in a new era of neuroscience innovation.
Alkermes Plc. (NASDAQ:ALKS) It is a global biopharmaceutical company that develops and commercializes medicines for complex and difficult-to-treat psychiatric and neurological disorders, including addiction, schizophrenia, and bipolar disorder. The company has a portfolio of marketed products and a pipeline of investigational drug candidates, with a focus on neuroscience.
1. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)
Stock Upside Potential: 85.53%
10-Year Revenue Growth Rate: 14.3%
Number of Hedge Fund Holders: 58
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is one of the best beginner stocks to buy, according to analysts. On September 6, the company delivered positive pivotal Phase 3 data for PALYNZIQ (pegvaliase-pqpz) in Adolescents with Phenylketonuria.
Clinical data showed that the candidate drug successfully triggered a 49.7% decrease in mean blood phenylalanine (Phe) levels in adolescents aged 12 to 17 with phenylketonuria (PKU) treated with PALYNZIQ. The study evaluating the efficacy and safety demonstrated statistically significant blood lowering compared to diet alone. PALYNZIQ is the first and only enzyme substitution therapy approved to treat adults with PKU
According to Greg Friberg, M.D., Executive Vice President and Chief Research & Development Officer at BioMarin, the study confirms that PALYNZIQ can help adolescents experience relief from the burden of their conditions.
“BioMarin has been deeply committed to advancing scientific progress for people living with PKU over the past two decades, and we look forward to sharing these results with global regulators with the aim of bringing the unequaled efficacy observed with PALYNZIQ to an even younger group of people,” said Freiberg.
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is a global biotechnology company that develops and commercializes transformative medicines for people with severe and life-threatening genetic diseases, often rare conditions that have been largely ignored.
While we acknowledge the potential of BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BMRN and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 10 Best Tech Stocks to Buy According to Cathie Wood and 13 Best Tech Stocks to Buy for the Long Term.
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